AdParlor Says U.S. Facebook Ad Prices Dropped 14%

AdParlor says that the average price for U.S. Facebook advertisements priced on a per-click basis has dropped by 14 percent over the past quarter.

The company’s Chief Executive Office Hussein Fazal emailed us the infographic that appears at the very bottom of this post. He explained via email:

Those numbers are actually pulled from Facebook suggested bids. Suggested bids were pulled roughly 100 times per day over the reported period and averaged out. It is hard to say the real reason for the fluctuations. The most likely one is simply changing market conditions. As there is a constant in-flow and out-flow of advertisers at different bids. Also, Facebook is always making changes (four ads on a profile instead of three, ads scrolling with page movement, auto-refreshing of ads, new ad units…)

Clearly, the prices show some volatility, and it’s very possible that other ad buyers are seeing different patterns. AdParlor’s average cost per click on U.S. Facebook ads had risen 31 percent in the first quarter of this year.

Last month, the average Facebook cost per click ad purchased through AdParlor was 95 cents in the U.S., compared to $1.36 in March of this year.

AdParlor’s average cost per click for second quarter of 2011 was $1.03, compared to $1.20 in the first quarter of the year, and 92 cents during the last quarter of 2010.

Readers, what do you think about the patterns in the infographic below?